1 February 2026, and the auto industry has its set of expectations from the FM.
The automobile industry of India is calling for strengthened policy measures for increasing the production of domestic electric vehicles along with increased spending on public charging infrastructure.
Budget 2026-The Expectations Of Auto Giants
Automobile industry representatives are of the view that the Budget 2026 would prioritize scaling up EV charging networks.
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A long-awaited GST reset, festive-season demand and year-end sales brought smiles on the faces of automobile manufacturers in 2025. In 2026, targeted measures to ease cost pressures, steady demand and restore segments across different segments of the automobile industry are much needed. Automobile manufacturers are worried about the popularity of entry-level cars and two-wheelers unlike premium passenger vehicles that have somehow continued to buy more and more buyers.
Industry experts view this gap that can easily be transformed into a long-term opportunity. However, this would the revival of mass-market demand. Balance in entry-level segments can be restored via ease of financing, minimized running expenses and lower upfront costs.
Rural Automobile Economy Expectations
The Union Government may extend the PM E-Drive scheme beyond March 2026 while introducing a series of interest subvention schemes for 3-wheeler and 2-wheeler buyers of the country to empower the rural population.
Market analysts believe that clear policy support must be provided by the union government through budgetary measures for strong hybrids. This could be done by the extension of concessional GST rates and rationalizing duties on semiconductors, batteries, CKD kits for small cars and transmission kits. This would be beneficial to assist OEMs in managing costs without undermining the concept of domestic manufacturing.
EV adoption across passenger vehicle and two-wheeler segments should be a priority for the union government. Many believe that a multi-pronged approach would be extremely helpful for boosting sectoral and consumer confidence.
